ElevenLabs in Talks with EU-Backed Scaleup Europe Fund for Over $500 Million Investment

Scaleup Europe Fund Eyes Major Investment in ElevenLabs

The EU-backed Scaleup Europe Fund is in active discussions to invest in ElevenLabs, the voice AI company that has emerged as one of Europe's fastest-growing tech ventures1

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. According to Bloomberg, ElevenLabs aims to raise over $500 million in this funding round, marking another significant milestone for the London-based AI startup2

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. The European technology fund, managed by private equity firm EQT and backed by €5 billion in capital, has been actively closing Europe's late-stage funding gap since it began investing this summer1

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ElevenLabs' Rapid Valuation Growth

The AI company has experienced remarkable growth in its market valuation over the past year. In February, ElevenLabs raised $500 million in a funding round led by Sequoia Capital, achieving an $11 billion valuation1

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. Just months later, in July, Bloomberg reported that the company was exploring a secondary share sale that could value it at approximately $22 billion—nearly double its February valuation1

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. This trajectory reflects strong investor confidence in the voice cloning and generation market. The company reported more than $330 million in annual recurring revenue for 2025, demonstrating substantial commercial traction1

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Strategic Fit Despite Geographic Complexity

While ElevenLabs is based in London, outside the European Union, the investment in ElevenLabs represents an intriguing strategic choice for the Scaleup Europe Fund. The company's founders, CEO Mati Staniszewski and CTO Piotr Dąbkowski, are Polish entrepreneurs from Warsaw, and the company is actively expanding its team in Poland1

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. Poland's state development bank purchased an $11 million stake through its venture arm Vinci in June, signaling governmental support for the venture1

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. The European Commission invested €1 billion in the Scaleup Europe Fund, alongside institutional investors including Allianz, APG, Novo Holdings, CriteriaCaixa, and Santander's Mouro Capital1

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Scaleup Europe Fund's Investment Portfolio

The fund has already deployed capital across several high-profile European tech companies. It co-led Iceye's €1 billion Series F in August, participated in Lovable's $400 million round at a $13.3 billion valuation, joined Mistral AI's €3 billion Series D, and this week backed Tandem Health's $100 million Series B1

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. These investments demonstrate the fund's commitment to supporting promising companies so they can scale within Europe rather than seeking US investors1

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ElevenLabs' Technology and Market Position

ElevenLabs develops sophisticated AI models that create and clone voices for multiple applications including dubbing, audiobooks, advertising, and call centers1

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. This technology addresses growing demand across media, entertainment, and customer service sectors. The company's rapid revenue growth and successive valuation increases suggest strong product-market fit in the competitive voice AI landscape.

Future IPO Plans and Market Speculation

CEO Staniszewski has indicated that ElevenLabs might be ready for a potential IPO in two to three years and could consider a dual listing in Warsaw1

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. This timeline suggests the company is positioning itself for public markets while maintaining ties to its Polish roots. Interestingly, the number 11 appears frequently in the company's financial milestones—job advertisements reference past valuations and fundraising totals as multiples of 11, and Poland's stake was precisely $11 million1

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. Both EQT and ElevenLabs declined to comment on the ongoing discussions, and sources note there is no guarantee a deal will materialize1

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. Watch for announcements regarding the funding round's closure and any shifts in ElevenLabs' valuation as negotiations progress.